Foreseeing to reach 550 billion won in quarterly sales with operating income exceeding 70 billion won Dongbu Steel is foreseen to hit an all-time high in its second-quarter business performance of the year, analysts said. The Korea Investment & Securities Co. (KITC) said June 17 in its enterprise analysis report that Dongbu Steel is expected to reach the highest-ever business record in the second quarter of this year, marking 550 billion won in the quarterly sales with operating income exceeding 70 billion won. If Dongbu Steel posts its second-quarter sales and operating income as estimated, the total sales and operating income of the company in the first half of this year would get to 1 trillion won and 120 billion won, respectively. In addition, such positive factors as a drop in depreciation expense and foreign exchange profit would be much helpful for the company to improve its business performance. An analyst at the KITC said, ‘Dongbu Steel increased its selling prices on cold-rolled steel sheets and galvanized steel sheets in April and the related price increase effect is being favorably reflected in its business performance and furthermore, its exports are getting brisk. Despite the worry over possible business slowdown in Chinese market in connection with the Chinese government's recent announcement onthe belt-tightening policies, its export prices for high value-added products in the outbound shipments to China would not be faced with any drastic change as the demand and supply conditions in the Chinese market are tight.‘ The KITC analyst diagnosed that Dongbu Steel has a slim possibility to see its actual business performance get worse, because the companymay have a chance to additionally increase the selling prices on its products in accordance with the result of the hot-coil import price talks with Japanese steelworks that is demanding that their export prices should be raised by U.S.$50-100 per ton in the third quarter of this year. sunhong@snmnews.com